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Construction spending drops

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Monday, October 01, 2012

A solid gain in home construction failed to offset declines in nonresidential activity for builders in August.

The August decline left spending at a seasonally adjusted annual rate of $837.1 billion, which is 12.2 percent above a 12-year low hit in February 2011. Still, construction activity is roughly half of what economists consider to be healthy.

One bright spot in the August report was a 0.9 percent increase in private residential construction, another sign that housing is recovering following a prolonged slump. In August, both single-family and apartment construction was up.

Read more at OregonLive.com.

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